The first quarter (Q1) disappeared in the blink of an eye and we are already deep into Q2 when we should be busy in the housing market. However, I have to admit that I am not sure where we are right now.
Are we facing difficulties and things will get better? Or are we in the calm eye of the storm, trying to catch our breath before it starts again? Alternatively, have we just had the prologue and now await the main action?
It’s a confusing place that as we wait with bated breath to see what’s next for our orange cousin in the White House, we wonder if the King’s visit will calm him down long enough to get the sense that now is the time to hold a lasting peace — if, of course, the other party wants it.
A week is a long time in politics, and anything can happen
The problem is that, at the time of writing, it seems that we may be in the eye of the storm, as energy prices are rising and while the prospect of peace talks seems very distant, oil prices have risen to US $ 126 per barrel and the subsequent inflation that casts a shadow over interest rates.
What this means for the Bank of England suggests that it will continue its wait-and-see game for now as the opposing forces of higher energy costs and depressed demand from a weak economy cancel each other out. I could be wrong, as the Bank’s announcement came after I wrote this, but I think it would be a mistake to act too early and increase rates given the sudden swings in sentiment that can change everything when a tweet, or “truth”, drops.
Another reason why the Bank is holding its hand is because, despite the increase in overall inflation reaching 3.3%, the core of both core and resource inflation has not changed.
It’s a dark time for voters
As far as our government is concerned, the next set of local elections is fast approaching and it looks like a dark time to be a voter.
There seems to be a lack of rational group choice that offers rational solutions. And, no matter what your politics, the UK seems to align with either the center left or center right parties. The lack of strong, moderate opposition is a shame, while extremes on both sides can cause all kinds of problems for our industry, and possibly society as a whole!
The prime minister has had a very difficult time, which does not seem to be getting better soon. But the week is a long time in politics, and anything can happen, although right now those ‘anything’ times don’t seem right, and we wonder what’s next to come out of the woodwork.
It would be a mistake to act too early and raise prices given the sudden mood swings that can change everything
Can we please have some calm and stability? We all deserve it. Please!
There was positive analysis from the HomeOwners Alliance about the fact that 74% of homeowners had cited financial pressures – such as mortgage rates, deposit requirements and stamp duty – that prevented them from moving. Meanwhile, 42% said lower interest rates were needed, 36% wanted to see lower stamp duty and 27% said more suitable homes for all walks of life were important.
Affordability is still a big player for first-time buyers and we as an industry need to continue to get the message out that there are more options than we have had in a long time to help people who want to get into that level of housing.
Tenants’ Bill of Rights
The big thing in the last few weeks has been the introduction of the Employers’ Rights Act, which will change the way employers work in England.
No-fault evictions are out, as guaranteed by shorthold tenants, instead they’re going to fixed-term tenancies that don’t have a set end date. The big news, however, is that pets are definitely inside, which – as a pussy-cat owner (very cute) – is welcome.
It is important that everyone feels respected and able to bring their true selves to work
For some landlords this will be another reason to sell but, as we all know, the death of the buy-to-let market has been wrongly predicted many times and this is no exception. The market will still exist, and professional landlords will adapt and thrive as usual.
Anyway, enough with this first piffle; what about the latest financial markets? Well, my dear star watchers of the exchange rate, as the previous three-month column Sonia has been slightly lowered, down 0.04% to 3.74%, while the exchange did not really go anywhere.
The 2-year yield was down 0.01% at 4.24%
The 3-year yield rose 0.01% to 4.21%
The 5-year yield rose 0.04% to 4.22%
The 10-year yield rose 0.07% to 4.46%
The mortgage world has at least had a little time to catch its breath from the March madness, with fewer rate cuts returning to the market and some new lender products and initiatives being welcomed.
Nationwide we have increased our LTVs on redevelopments and will now lend up to 95% LTVs for new houses and 85% LTVs for new flats. It also extended its delivery period to nine months for new buildings.
The market will still exist, and professional landlords will adapt and thrive as usual
Darlington Building Society has helped raise its maximum LTV on foreign/foreign currency loans to 90% LTV, with proceeds used for affordability purposes once converted into sterling and a 20% haircut applied. Available for first timers and 16 currencies available, with the potential to borrow six times your income
Saying ‘Yes’
Skipton Building Society is continuing its good work with consumers with its new ‘Let’s Find a Way’ proposition, aiming to say ‘Yes’ to more borrowers. This will combine rational lending and human judgment, with a particular focus on borrowers with complex or unusual needs. Yes, we love it!
Gen H has opened its income mortgage to all sellers on its panel serving the Scottish market.
BM Solutions has introduced a single integrated product transfer and progression process, which is great, while Accord has increased its buy-to-let loans, now offering 75% LTV up to £1.5m and 80% LTV up to £750,000.
Affordability is still a big player and we need to keep getting the message out that there are more options than we have had in a long time.
I would like to conclude with a request, and that is for as many of you as possible to complete the latest equity, diversity and inclusion (ED&I) survey. This is part of the Working in Mortgages program from the Intermediary Mortgage Lenders Association and the Association of Mortgage Intermediaries.
It’s time to look at the progress that has been made in our good industry since the first report five years ago, identifying areas of meaningful change and those where further improvement is needed.
As always, your words, ideas and information are needed and, the more we find out, the more accurately we can paint a picture of where we are.
To attract new talent, create a fair and inclusive industry, and engage future customers, it’s important that everyone feels valued and able to bring their true selves to work.
The hero goes to Zero
New Survey by Ami and Imla ED&I – is very important for every industry
Darlington Building Society – 90% LTV in expat and foreign currency – gold
Skipton Building Society’s ‘Saying Yes’ campaign
Another inflation – not what the industry wants…
Lack of real leaders with integrity and vision – we need them more than ever, somewhere
Do You Know What Really Grinds My Gears?
Like most people, I’m a bit fond of AI, while also fully aware that it’s currently being heralded as the answer to everything and the destroyer of everything. Actually, it’s not.
However, I think there are dangerous precedents and assumptions made by consumers and customers alike.
I have been asked for my advice by a client equipped with a ChatGPT printer. For the record, I was right and the AI wasn’t – wow, who knew? – and, while I don’t expect to be always right, there lies the danger.
The real opportunity is to use AI and human advice in collaboration with each other
AI, meanwhile, has a habit of doing a few things that should give us pause. It can overemphasize what has happened historically, it can show hidden biases built into the knowledge it has learned, and it can see things that are missing when trying to fill in the gaps in its knowledge.
It also seems like there are a lot of shiny tools emerging, without enough due diligence on where all that data and information lives, flows and ends.
That said, I’m a big fan of AI and what it can do for us as a consumer society. When used properly, it can help us work smarter, faster and better. But balance is important.
AI should not be seen as a substitute for human advice, empathy, experience or accountability. The real opportunity is to use AI and human advice in collaboration with each other.
Andrew Montlake is a director at Coreco
This article appeared in the May 2026 issue of Mortgage Strategy.
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